East Africa Growth Holding has secured Competition Authority of Kenya’s (CAK) approval to acquire 10.13 per cent of the issued share capital of I&M Group from one of the bank’s shareholders-British International Investment.
- The acquisition comes with certain rights touching on the appointment of directors to the board, business plans, and significant changes to senior management.
- The new arrangement will see the East Africa Growth Holding acquire indirect joint control over I&M Group with existing shareholders.
- British International Investment (BII) will receive Sh6.5 billion from the sale of its 10.13 percent stake in I&M Group to East Africa Growth Holding.
“As per the parties’ submissions, this transaction will not elicit negative public interest concerns. Specifically, all the 1,414 employees of the bank will be retained under the current employment terms. Additionally, the proposed transaction is unlikely to affect the ability of SMEs to gain access to the market neither will transaction affect the ability of Kenyan undertakings to compete in the international markets,” CAK noted.
East Africa Growth Holding, which is incorporated and registered in Mauritius, is affiliated with AfricInvest, a private equity investor with interest in more than 200 companies across 35 African countries, and several sectors.
I&M is classified as a tier 1 bank ranking at position 11 overall with a market share of 5.15 per cent. Other tier one banks are KCB, Equity, NCBA, Cooperative Bank, ABSA, Standard Chartered, Stanbic, and Diamond Trust Bank.
The banks are classified using weighted composite index comprising net assets, customer deposits, shareholders funds, number of deposit accounts, and number of loan accounts.
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